A time capsule of the greatest financial mania in the history of mankind, told in real-time by regular folks and patriots. May future generations better understand the madness of crowds, and how power and money corrupt.

October 17, 2008

36 comments:

I am looking at buying 80 acres of forest and pasture where I live and had to deal with a completely ignorant lazy 6 percenter on the phone who theoretically is the salesman. He knew nothing about the property, told me to go and look at it myself and admitted his only contact with the seller was 15 minutes when he filled in the listing info on the computer.

If I buy this place (about 180 grand) this parasite will get 11 grand for his efforts. No way to avoid the prick.

I fully intend to buy my next property through Redfin or similar if they are still around. If not, I will research other online discount RE broker services. I think it's still possible to find a helpful RE agent (Jim and bubbleinfo.com seems pretty decent), but I will certainly be a lot more critical if/when I interact with one; if I'm going to be paying 3% to an agent, they better be working for it.

Although the use of an RE Agent is sometimes a necessary evil, you can ease up on lining their pockets with easy $$$ and limit your exposure to fraud, by seeking out your own providers of title insurance, financing/appraisal, and inspection.The RE Agent should NOT be involved in ANY of these services.

Do not be steered to ‘their guy’, as there is likely an illegal kick-back in there somewhere that you will end up paying for either on your closing stmt or when the inspection/appraisal/title turn out to be way wrong.

I never did trust a single realtor in my whole life. But millions aren't like us (I know--DUH!)

Here's one new and scary reason why that might be: A blogger at the Daily Beast (can't find the post again, alas) hypothesized today that the huge amounts of antidepressant drugs in the contemporary American bloodstream helped people override their natural caution, fear, and (apparently) math skills so they were prone to buy houses oh-so-stupidly.

Pharma-fueled mania might conceivably have helped millions to say the words, "I deserve the granite countertops" and sign their lives away without a second thought.

Prices, sales of Bay Area high-end homes may fall next year, Realtor group predicts

"The higher end of the market may be a little more at risk than in the past because of the question mark about jumbo financing," said Leslie Appleton-Young, chief economist for the California Association of Realtors, in an interview Tuesday, a day before delivering her statewide housing forecast for 2009.

Ever since the "credit crunch" began late last year, interest rates for "jumbo" loans — which currently means those of more than about $730,000 — have been significantly higher than rates for smaller, "conforming" loans, leading to fewer sales of expensive homes.

And as of January 1, because of economic and housing recovery legislation passed in Congress this summer, it's likely that the higher rates will apply to all loans of more than about $625,000, which may further chill the market for high-end real estate.

Continued stock market volatility could do the same, Appleton-Young said, or it could lead those wary of the stock markets to invest in real estate instead.

"There's a lot of unknowns now," she said. "That's the most honest way to say it."

he called to tell my wife and me that a couple was coming to view the house that we looked at in early June, as if we should run to put an offer on it before they do, if their is such a couple...there's not.

I think I'll call him in a month or so and ask him why the home is still listed! :)

I have been watching a forclosed home for about 8 months and it has finally come up for sale (overpriced!). I contacted the RE office and a lady I spoke with said the bank won't budge. She is not the listing agent but said she would keep me informed. She really has done nothing except email a few OTHER houses which I'm not interested in. A month later, they have come down (5%, which isn't much). I only found out because I check their website every day. We're thinking of making an offer this weekend (under what they're asking), but I wonder if I can make an offer without a RE agent. Will that just make the listing agent get the whole commission? Is there any way to avoid this??

Must I use an agent to make an offer? I realize the listing agent has done some "work" but if I've found an REO and watched it for 8 months and am ready to offer now that its for sale, can I make the offer myself? I really dont want to give an agent 3% of sale price just because they happen to be there when we walk in the office. . . .any advice on how to avoid?

I hope not. We don't need them. There will be realtors even in the future, but much less than today. Those realtors will offer relocation services for companies or helping people moving from afar. The rest needs just an inspector, a lawyer, and a car to buy a house.

After the agent or the Broker tells you what their commission will be, tell them you will pay them 1/4 of that amount... don't EVER pay what the Broker or Agent is telling you to pay... tell THEM what you are willing to pay... now, they will balk and tell you how much work they do.. bullshit... the escrow officer and the escrow assistant are the ones doing all the work, send her/him a nice gift certificate. Take it from me, I know....

I have used (or not used) RealtWhores with great (or lousy) results. Mostly, in the past, it was a time and distance issue when I used a Realtwhore. Some were good; some were awful, just like everybody else.

Are they smarter than me, No! They just do what they do every day (or at least they used to) and are more experienced at it.

A "good" RealtWhore can save the day when unexpected problems arise in the sale. They want that 3-6%. Even the bad ones can come thru in a pinch. They also want that 3-6%.

I was looking at a gorgeous place out of state last summer. Nice quaint older town, low prices, not much in the way of services, but almost non-existent property taxes also (Very important to a retiree. Taxsylvania is rated fiftieth, out of the fifty states, by AARP as the worst state to retire in. Other factors are involved, but the outrageous property taxes shove the state “over the top” as it were, into last place.)

The RealtWhore called me later that day to say that other couples had been in to see the property, and that I should make an offer right away. If I wasn't an HP'er, I might have jumped. Compared to the prices and assessments, where I live, the owner was giving it away for next to nothing. But I didn't jump.Got on the Internet yesterday, found the place, still for sale, at a reduced price. I wonder what spring will bring.

Market, it will be nearly impossible to make an offer on a REO property without going thru the agent. The listing agreement insures it. Just do your own due dilligence and make sure you get it for the price YOU want and dont worry about his payday. He might be one of the few agents actually worth a $%&# and be of some kind of assistance.

Thanks, but I have watched an REO since December. Went to trustee sale twice. Came on to the market in September. Went to RE office to ask for listing agent. Another one said she wasnt there but she could answer questions. I asked a few and went on my way. 2nd lady has emailed me a few times with other listings, but told her i'm only interested in the one. I tried to contact listing agent again, and 2nd lady sent me a nasty email "I feel duped, YOU had me under the impression that I would be your agent". She has done NOTHING but answered a few questions and now she expects me to be committed to her to get 3% just because the listing agent wasnt in the office! I would just like to use the listing agent but now she won't even call me. I'm not in a position where i have to buy, just wanted to for the investment. They dont seem to want to sell.